In a bid to mitigate the surge in food prices and improve food production, the Central Bank of Nigeria (CBN) has given 2.15 million bags of fertilizer, valued at over N100 billion to the Federal of Agriculture and Food Security to be distributed to farmers across the country. This is as the minister of Agriculture and Food Security, Abubakar Kyari yesterday confirmed receiving the 2.15 million bags of fertilizer allocated by the CBN to boost food production. The CBN governor Olayemi Cardoso announced the donation yesterday in a new collaboration with the Ministry of Agriculture for the implementation of policies that cultivate a resilient macroeconomic environment. He added that the investment in agriculture would increase food production and reduce inflation, currently at 29.9 percent.
“In pursuit of these shared goals, we are delighted to announce the allocation of 2.15 million bags of fertilizer, valued at over 100 billion Naira, which we humbly hand over to the Ministry of Agriculture and Food Security. This contribution from the Central Bank aims to amplify food production capabilities and foster price stabilization within the agricultural sector,” the CBN governor said yesterday.
"Food prices are a crucial component of inflation, especially considering that a substantial portion of household expenditure in Nigeria is allocated towards food and non-alcoholic beverages. This reinforces the critical need to address food inflation as a pivotal aspect of managing overall headline inflation rates.
Cardoso had said that the CBN would no longer be involved directly in interventions but would partner with entities that could handle them. He assured that the CBN was doing all within its powers to monitor and recover the intervention monies damaging the economy.
“In alignment with our strategic shift towards focusing on our fundamental mandate, the CBN has veered away from direct quasi-fiscal interventions and transitioned towards leveraging conventional monetary policy tools for executing monetary policies effectively.
Cardoso told those at the event that his administration aims to enhance its partnership with the Ministry of Agriculture, bolstering its endeavours to enhance food productivity and security, ultimately curbing food inflation and fortifying CBN’s pursuit of price stability.
The central bank reiterated its commitment to prioritising price stability and instilling confidence in the Nigerian economy by upholding consumer price stability and ensuring a balanced foreign exchange market.
